Understanding Security Token Offerings in Security Token Development

[Luna wolfe]

A Security Token Offering (STO) is a fundraising method in which digital tokens representing ownership or rights to a security are issued and sold to investors. Unlike Initial Coin Offerings (ICOs), which often involve utility tokens, STOs offer tokens that are backed by tangible assets, profits, or revenue of the issuing company, making them subject to securities regulations. STOs are a key component of Security Token Development, providing a regulated framework for issuing and trading digital securities while ensuring compliance with relevant laws and regulations governing securities offerings.